The technology for virtual and augmented reality can be used in sports training apps where a computer can analyse your golf or tennis swing, or in surgical procedures, Fong said.

There are already apps where you can change the colour of the wallpaper and move furniture around on interior design sites, or try on different glasses on a picture of yourself.

What we are most positive on is the creativity. What we’re seeing on the streets is still the very beginning

William Fong, Baring China Select Fund

While there is lots of excitement about the technology, betting on any one company or one theme would be a mistake, Fong said.

“The VR industry is still developing.”

Canalys’s Jason Low said examples of the technology in China included virtual property viewings from developers such as Vanke, Wanda Group, Greenland Group and Poly Group; hotel rooms and virtual travelling experiences from eLong and Homeinns; planned enhanced product functions from e-commerce providers such as Alibaba, as well as virtual-reality theme parks by Shanda Group and Huayi Brothers.